Mike Ashley’s Sports Direct, the new owner of House of Fraser (HoF) is to shut four stores across the UK, including the one in Nottingham’s intu Victoria Centre. The other three affected stores are: Gateshead, Nottingham, Norwich
The company says it had been unable to strike a deal for lower rents with their landlord, Intu, and says it has made the announcement “with regret”.
As reported previously, in East Midlands Business Link, Sports Direct, bought the struggling department store chain out of administration for £90m, but explains it has since been unable to reach agreement with Intu properties.
“Despite our best efforts we have been unable to agree reasonable terms for these stores to continue trading.
“Sadly, we are now in consultation with staff about the fact these stores face closure. We hope other institutional landlords will continue to work with us in order to save stores and jobs.”
HoF has yet to confirm exactly how many jobs will be lost, but it is thought to run into hundreds.
Nigel Wheatley, general manager for intu Victoria Centre, said: “We have been advised today that the House of Fraser at intu Victoria Centre will be closing next year as part of their national stores review. We have had a number of meetings with Sports Direct to try to agree terms. While we cannot discuss the detail, we have been unable to reach an agreement.
“There’s a lot going on at the centre and our plans mean that we have a number of new brands either now open or currently in negotiations to take their first stores at intu Victoria Centre.”